Washington State Real Estate Practice Exam

Accelerated depreciation refers to a method of calculating depreciation for income property where more of the asset's value is deducted in the early years of ownership. This results in a faster depreciation rate and potentially causes excess depreciation to be recaptured as ordinary income upon sale. Options B, C, and D are incorrect because they do not accurately describe the implications of accelerated depreciation for tax purposes. Option B implies that there would be no tax implications at all, while option C refers to smoothing the depreciation rate, which is not unique to accelerated depreciation. Option D implies that taxes will be paid at a later date, but it doesn't explain how the depreciation method affects the amount of taxes owed.